Congress has passed a sweeping new tax law known as the One Big Beautiful Bill Act (OBBBA), which is already reshaping the financial landscape for families, retirees, high earners, and business owners.
At Briaud Financial Advisors, we’ve reviewed the fine print to help you understand what’s changed, what new opportunities are time-sensitive, and what may require strategic planning over the next several years.
Major Tax Law Changes in the One Big Beautiful Bill Act
These are the key permanent provisions in OBBBA that will have long-term implications for estate planning, income taxes, and overall financial strategy.
Estate Tax Exemption Increased to $15 Million Per Person
The estate tax exemption has increased to $15 million per person, or $30 million per married couple. This is a major shift from the expected rollback to $7.14 million, offering a valuable opportunity for estate and business succession planning.
2017 Tax Cuts Made Permanent
Provisions from the Tax Cuts and Jobs Act (TCJA) of 2017 have been made permanent. These include:
- Lower marginal income tax rates across all brackets
- A larger standard deduction, increasing to $31,500 for joint filers and $15,750 for single filers in 2025
- Continued elimination of personal exemptions
Child Tax Credit Increased
Beginning in 2026, the Child Tax Credit increases to $2,200 per child, and will be indexed for inflation going forward.
Mortgage Interest Deduction Cap Made Permanent
The cap on deductible mortgage interest remains at $750,000 of principal and is now permanent under the new tax law.
Time-Sensitive Tax Planning Opportunities (2025–2028)
Several provisions of the One Big Beautiful Bill Act are temporary and expire after 2028, so it’s important to evaluate whether they apply to you and take action accordingly.
New Senior Tax Deduction
A new deduction of $6,000 is available to taxpayers age 65 or older with income below:
- $75,000 for single filers
- $150,000 for joint filers
This deduction is available even if you take the standard deduction and applies from 2025 through 2028. It begins to phase out above these income levels.
Temporary SALT Deduction Increase
In 2025, the SALT deduction limit increases to $40,000 for households with modified adjusted gross income (MAGI) of $500,000 or less. This enhanced deduction phases out gradually for incomes between $500,000 and $600,000. For those with MAGI over $600,000, the SALT deduction remains capped at $10,000. This increase is temporary and reverts back to $10,000 in 2029.
Tip Income Deduction
From 2025 to 2028, workers in tipped industries can deduct up to $25,000 of tip income. The deduction begins to phase out above:
- $150,000 for single filers
- $300,000 for joint filers
Auto Loan Interest Deduction
If you purchase a new vehicle with final assembly in the United States between 2025 and 2028, you may deduct up to $10,000 in loan interest—provided your income is under:
- $100,000 for single filers
- $200,000 for joint filers
This deduction begins to phase out after these modified adjusted gross income (MAGI) levels.
Charitable Deduction for Non-Itemizers
Starting in 2026, taxpayers who do not itemize can still deduct charitable contributions of:
- Up to $1,000 for single filers
- Up to $2,000 for joint filers
This deduction applies to eligible charitable contributions and offers a new incentive for philanthropic giving.
New “Trump Accounts” for Children
US children born between 2025 and 2028 may qualify for a federally seeded savings account with a $1,000 government contribution.
- Contributions of up to $5,000 may be made annually, increased in the future for inflation. These contributions are NOT tax deductible by the donor.
- Investments are limited to equity investments in primarily United States based companies, and earnings grow tax deferred.
- No distributions are allowed before the child turns 18.
Future Tax Law Changes That May Require Planning
While many of OBBBA’s provisions reduce taxes in the near term, others may introduce limitations or tax increases—especially for higher earners—starting in 2026.
Itemized Deduction Limits Return in 2026
Itemized deductions will be limited to the 35% tax bracket. This may reduce the effectiveness of certain deductions for high-income taxpayers.
New Floor for Charitable Deductions
Starting in 2026, only charitable donations that exceed 0.5% of adjusted gross income (AGI) will be deductible—unless made via Qualified Charitable Distributions (QCDs) from an IRA, which are fully deductible for those age 70½ and older.
Repeal of Green Energy Tax Credits
OBBBA rolls back several tax credits from the Inflation Reduction Act, including:
- Electric vehicle tax credits
- Residential energy efficiency incentives
This may affect return on investment (ROI) for upcoming green energy upgrades.
What You Can Do Now
The One Big Beautiful Bill Act opens the door for both near-term tax savings and long-term strategic planning. Consider taking action if you are:
- Updating your estate plan to reflect the higher exemption
- Gifting assets to children, grandchildren, or charitable organizations
- Planning for future retirement income or Required Minimum Distributions (RMDs)
- Reviewing your business entity structure or compensation strategy
- Preparing for future care needs or benefit eligibility
Ready to Make the Most of These Changes?
Whether you’re thinking about updating your estate plan, adjusting your tax strategy, or planning for long-term care, the One Big Beautiful Bill Act presents both opportunities and challenges.
At Briaud, we specialize in guiding clients through complex transitions like this. We’ll help you understand how these new tax rules apply to your specific situation—so you can move forward with clarity, confidence, and a plan that aligns with your goals.
Let’s talk about how these changes fit into your bigger financial picture and how we can help you make the most of them.